Response to the following problem:
The Regina Corporation reported the following information for the year ended December 31, 2018:
Net income $61,200
Interest expense 5,000
Income taxes 20,000
The company's balance sheet at December 31, 2018 disclosed the following information: preferred shares ($0.12 per share cumulative dividends, 10,000 shares issued and outstanding at $20 per share); and common shares (15,000 shares issued and outstanding at $25 per share). During 2018, $5 per-share cash dividends were declared and paid to the common shareholders, in addition to the preferred share dividends. Dividend yield on common shares was 27.5%.
Required: Determine Regina's:
1. Earnings per share
2. Price-earnings ratio.